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P&G To Sell Pringles

Deal will add $2.35 billion to war chest.

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By: TOM BRANNA

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Procter & Gamble Co will sell its Pringles business to Diamond Foods Inc. for $2.35 billion. The move will add billions to P&G’s coffers and could put the company in a buying mood if the right deal comes along.

The addition of Pringles to Diamond’s portfolio will more than triple the size of Diamond’s snack business, and bring in net sales of about $2.4 billion for the fiscal 2011, the company said.
Diamond expects to take up one-time costs of about $100 million related to the transaction over the next two years.

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